Student Loans in South Dakota

Average debt, state-specific forgiveness programs, and repayment strategies for South Dakota borrowers in 2026.

Average Debt

$32,100

Monthly Payment (Std)

$365

State Tax Deduction

vs. National Avg

+$100

Student Loan Overview for South Dakota

South Dakota borrowers carry an average student loan debt of $32,100, which is above the national average of approximately $32,000. Under the Standard 10-year repayment plan at the current federal interest rate of 6.53%, South Dakota graduates would pay $365 per month and a total of $11,700 in interest over the life of the loan.

For borrowers seeking lower monthly payments, income-driven repayment plans like SAVE (formerly REPAYE) cap payments at 5-10% of discretionary income. South Dakota residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

South Dakota Student Loan Forgiveness Programs

South Dakota has no state income tax. The state offers the Health Professional Recruitment Incentive.

In addition to state programs, South Dakota borrowers have access to all federal forgiveness programs including PSLF, Teacher Loan Forgiveness ($17,500 for STEM and special education teachers), and income-driven repayment forgiveness after 20-25 years.

State Tax Deduction for Student Loan Interest

South Dakota does not have a state income tax, so there is no state-level student loan interest deduction. However, you can still claim the federal deduction of up to $2,500 on your federal tax return.

Top South Dakota Colleges & Average Debt

Institution	Avg. Graduate Debt
University of South Dakota	$29,000
South Dakota State University	$28,000

* Debt figures are approximate averages for graduating students who borrowed.

Frequently Asked Questions

What is the average student loan debt in South Dakota?

The average student loan borrower in South Dakota graduates with approximately $32,100 in student loan debt. This is above the national average of $32,000.

Does South Dakota offer student loan forgiveness?

South Dakota has no state income tax. The state offers the Health Professional Recruitment Incentive.

Can I deduct student loan interest on South Dakota state taxes?

South Dakota does not have a state income tax, so there is no state-level deduction. You can still claim the federal deduction of up to $2,500 on your federal return.

What are the best colleges in South Dakota for low student debt?

Among South Dakota institutions, University of South Dakota has an average graduate debt of $29,000. In-state tuition at public universities is significantly lower than out-of-state rates.

What repayment plan should I use for student loans in South Dakota?

Your best plan depends on your income and career. South Dakota residents earning under $50,000 should consider the SAVE plan for the lowest payments. Those in public service should pursue PSLF. Higher earners may benefit from the Standard plan or refinancing.

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